Multi Commodity Exchange of India Limited (MCX) made its debut today on the BSE. The discovered price derived after 45 minutes of order matching saw the price being discovered at Rs 1,387. The traded volume at this discovered price was just under 2 lac shares. The discovered price is done only at the designated exchange which in this case was the BSE. It is to be noted that the company was to be listed only on the BSE and there have been some issues in the past between MCX and the NSE and therefore the company chose not to list on the NSE. In a late evening development NSE listed and facilitated trading in MCX shares under the “permitted to trade” category. Competition between the two exchanges is so acute that NSE was forced to adopt this tactic. I believe in future companies and merchant bankers who find that clearances are not happening will choose this method.
Coming to the issue itself, normal trading began on a brisk note. The issue which was entirely an offer for sale was for 64,27,378 shares and the price band was Rs 860-1032. The issue was subscribed 54 times and was priced at the top end of the price band.
|Exchange||Open||High||Low||Close||Net Change||% Gain/loss||Wt. Avg||Volume|
From the table above it is very clear that the share after the price discovery moved up to make the day’s high of Rs 1,426 on the BSE and Rs 1,428.55 on the NSE. The low on the two exchanges was Rs 1342.55. The total traded volume was 55.76 lac shares which is 0.86 times the IPO size. The share was under pressure and is trading below the weighted average of the day which is 1379.36 on the BSE and Rs 1374.31 on the NSE. The share has had a great start but currently seems to be under some pressure.
It would be interesting to see where the share closes and what the delivery percentage is at the end of the day.